Shoprite Holdings, a major retailer, expects its annual earnings to increase by more than 20%, largely due to strong performance from its core South African supermarkets. The company’s omnichannel growth strategy, which blends online and in-store shopping, has been a key factor in this success.
The retailer forecasts headline earnings per share (HEPS) for the 52 weeks ending 9 June to rise between 15.2% and 25.2%, reaching 1,372.0p to 1,491.2p. For continuing operations, HEPS is expected to grow by 9.4% to 19.4% compared to the previous year. Total group sales from continuing operations are projected to increase by 9% to £262.3 billion, with sales from continuing operations up by 8.9%.
Supermarkets RSA, which accounts for 84.5% of group sales, saw sales grow by 9.5%, marking five consecutive years of market share gains. Like-for-like sales, which measure performance in existing stores, rose by 4.8%. The Checkers and Checkers Hyper brands, including Checkers LiquorShop, reported a 13.8% sales increase. Online sales through the Sixty60 delivery platform surged by 47.7%.
Shoprite expanded its footprint by opening 194 new supermarkets in South Africa, including 43 Shoprite stores, 38 Usave stores, 29 Checkers stores, and three Checkers Hyper stores. The LiquorShop business grew with 36 new Checkers and 45 Shoprite LiquorShops. Other brands, such as Petshop Science, Checkers Outdoor, Uniq clothing, and Little Me, also added new stores, supporting the company’s strategy to expand into underrepresented categories.
Outside South Africa, the group’s non-RSA supermarket sales grew by 6.4% in rand terms and 14.2% in constant currency, contributing 8.1% to total group sales. The company noted that last year’s figures were adjusted due to some operations in Angola, Mozambique, Malawi, and Ghana being classified as discontinued under international accounting standards.During the first half of the year, Shoprite repurchased shares worth £997 million, with no further repurchases in the second half. The company plans to announce its full-year results on 2 September.